I 

118TH CONGRESS 

2D SESSION H. R. 9017 

To amend the Mineral Leasing Act to make certain adjustments to the 

royalty rates for leases for oil and gas extraction on Federal land, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 11, 2024 

Mr. OGLES (for himself, Mr. PFLUGER, Mr. NORMAN, Mr. WEBER of Texas, 

Ms. HAGEMAN, Mr. GUTHRIE, Mr. PENCE, and Mr. GOOD of Virginia) 

introduced the following bill; which was referred to the Committee on 

Natural Resources 

A BILL 

To amend the Mineral Leasing Act to make certain adjustments to the royalty rates for leases for oil and gas 

extraction on Federal land, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Declaration of Energy 

5 Independence Act’’. 

6 SEC. 2. AMENDMENTS TO MINERAL LEASING ACT. 

7 (a) ONSHORE OIL AND GAS ROYALTY RATES.— 


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1 (1) LEASE OF OIL AND GAS LAND.—Section 17 

2 of the Mineral Leasing Act (30 U.S.C. 226) is 

3 amended— 

(A) by striking ‘‘162 4 ⁄3 percent’’ each place 

it appears and inserting ‘‘121 5 ⁄2 percent’’; and 

6 (B) in subsection (b)(1)(A), by striking 

7 ‘‘or, in the case of’’ and all that follows through 

8 ‘‘removed or sold from the lease’’. 

9 (2) CONDITIONS FOR REINSTATEMENT.—Sec10 tion 31(e)(3) of the Mineral Leasing Act (30 U.S.C. 

11 188(e)(3)) is amended by striking ‘‘20’’ each place 

it appears and inserting ‘‘162 12 ⁄3’’. 

13 (b) OIL AND GAS MINIMUM BID.—Section 17(b) of 

14 the Mineral Leasing Act (30 U.S.C. 226(b)) is amended— 

15 (1) in paragraph (1)(B), by striking ‘‘$10 per 

16 acre during the 10-year period beginning on the date 

17 of enactment of the Act titled ‘An Act to provide for 

18 reconciliation pursuant to title II of S. Con. Res. 

19 14’ ’’ and inserting ‘‘$2 per acre for a period of 2 

20 years from the date of enactment of the Federal On21 shore Oil and Gas Leasing Reform Act of 1987’’; 

22 and 

23 (2) in paragraph (2)(C), by striking ‘‘$10 per 

24 acre’’ and inserting ‘‘$2 per acre’’. 

25 (c) FOSSIL FUEL RENTAL RATES.— 


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1 (1) ANNUAL RENTALS.—Section 17(d) of the 

2 Mineral Leasing Act (30 U.S.C. 226(d)) is amended 

3 by striking ‘‘than $3 per acre per year’’ and all that 

4 follows through ‘‘and $15 per acre per year there5 after’’ and inserting ‘‘than $1.50 per acre per year 

6 for the first through fifth years of the lease and not 

7 less than $2 per acre per year for each year there8 after’’. 

9 (2) RENTALS IN REINSTATED LEASES.—Section 

10 31(e)(2) of the Mineral Leasing Act (30 U.S.C. 

11 188(e)(2)) is amended by striking ‘‘$20’’ and insert12 ing ‘‘$10’’. 

13 (d) ELIMINATION OF FEE FOR EXPRESSION OF IN14 TEREST.—Section 17 of the Mineral Leasing Act (30 

15 U.S.C. 226) is amended by striking subsection (q). 

16 (e) NONCOMPETITIVE LEASING.—Section 17 of the 

17 Mineral Leasing Act (30 U.S.C. 226) is amended— 

18 (1) in subsection (b)— 

19 (A) in paragraph (1)(A)— 

20 (i) by striking ‘‘paragraph (2)’’ and 

21 inserting ‘‘paragraphs (2) and (3) of this 

22 subsection’’; and 

23 (ii) by inserting ‘‘Lands for which no 

24 bids are received or for which the highest 

25 bid is less than the national minimum acVerDate Sep 11 2014 21:02 Aug 19, 2024 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H9017.IH H9017

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1 ceptable bid shall be offered promptly with2 in 30 days for leasing under subsection (c) 

3 of this section and shall remain available 

4 for leasing for a period of 2 years after the 

5 competitive lease sale.’’ after the period at 

6 the end; and 

7 (B) by adding at the end the following: 

8 ‘‘(3)(A) If the United States held a vested future in9 terest in a mineral estate that, immediately prior to be10 coming a vested present interest, was subject to a lease 

11 under which oil or gas was being produced, or had a well 

12 capable of producing, in paying quantities at an annual 

13 average production volume per well per day of either not 

14 more than 15 barrels per day of oil or condensate, or not 

15 more than 60,000 cubic feet of gas, the holder of the lease 

16 may elect to continue the lease as a noncompetitive lease 

17 under subsection (c)(1). 

18 ‘‘(B) An election under this paragraph is effective— 

19 ‘‘(i) in the case of an interest which vested after 

20 January 1, 1990, and on or before the date of enact21 ment of this paragraph, if the election is made be22 fore the date that is 1 year after the date of enact23 ment of this paragraph; 

24 ‘‘(ii) in the case of an interest which vests with25 in 1 year after the date of enactment of this paraVerDate Sep 11 2014 21:02 Aug 19, 2024 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H9017.IH H9017

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1 graph, if the election is made before the date that 

2 is 2 years after the date of enactment of this para3 graph; and 

4 ‘‘(iii) in any case other than those described in 

5 clause (i) or (ii), if the election is made prior to the 

6 interest becoming a vested present interest. 

7 ‘‘(C) Notwithstanding the consent requirement ref8 erenced in section 3 of the Mineral Leasing Act for Ac9 quired Lands (30 U.S.C. 352), the Secretary shall issue 

10 a noncompetitive lease under subsection (c)(1) to a holder 

11 who makes an election under subparagraph (A) and who 

12 is qualified to hold a lease under this Act. Such lease shall 

13 be subject to all terms and conditions under this Act that 

14 are applicable to leases issued under subsection (c)(1). 

15 ‘‘(D) A lease issued pursuant to this paragraph shall 

16 continue so long as oil or gas continues to be produced 

17 in paying quantities. 

18 ‘‘(E) This paragraph shall apply only to those lands 

19 under the administration of the Secretary of Agriculture 

20 where the United States acquired an interest in such lands 

21 pursuant to the Act of March 1, 1911 (36 Stat. 961 and 

22 following).’’; 

23 (2) by striking subsection (c) and inserting the 

24 following: 


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1 ‘‘(c)(1) If the lands to be leased are not leased under 

2 subsection (b)(1) of this section or are not subject to com3 petitive leasing under subsection (b)(2) of this section, the 

4 person first making application for the lease who is quali5 fied to hold a lease under this Act shall be entitled to a 

6 lease of such lands without competitive bidding, upon pay7 ment of a non-refundable application fee of at least $75. 

8 A lease under this subsection shall be conditioned upon 

9 the payment of a royalty at a rate of 12.5 percent in 

10 amount or value of the production removed or sold from 

11 the lease. Leases shall be issued within 60 days of the 

12 date on which the Secretary identifies the first responsible 

13 qualified applicant. 

14 ‘‘(2)(A) Lands (i) which were posted for sale under 

15 subsection (b)(1) of this section but for which no bids were 

16 received or for which the highest bid was less than the 

17 national minimum acceptable bid and (ii) for which, at the 

18 end of the period referred to in subsection (b)(1) of this 

19 section no lease has been issued and no lease application 

20 is pending under paragraph (1) of this subsection, shall 

21 again be available for leasing only in accordance with sub22 section (b)(1) of this section. 

23 ‘‘(B) The land in any lease which is issued under 

24 paragraph (1) of this subsection or under subsection 

25 (b)(1) of this section which lease terminates, expires, is 


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1 cancelled or is relinquished shall again be available for 

2 leasing only in accordance with subsection (b)(1) of this 

3 section.’’; and 

4 (3) by striking subsection (e) and inserting the 

5 following: 

6 ‘‘(e) Competitive and noncompetitive leases issued 

7 under this section shall be for a primary term of 10 years: 

8 Provided, however, That competitive leases issued in spe9 cial tar sand areas shall also be for a primary term of 

10 ten years. Each such lease shall continue so long after its 

11 primary term as oil or gas is produced in paying quan12 tities. Any lease issued under this section for land on 

13 which, or for which under an approved cooperative or unit 

14 plan of development or operation, actual drilling oper15 ations were commenced prior to the end of its primary 

16 term and are being diligently prosecuted at that time shall 

17 be extended for two years and so long thereafter as oil 

18 or gas is produced in paying quantities.’’. 

19 (f) CONFORMING AMENDMENTS.—Section 31 of the 

20 Mineral Leasing Act (30 U.S.C. 188) is amended— 

21 (1) in subsection (d)(1), by inserting ‘‘or sec22 tion 17(c) of this Act’’ after ‘‘pursuant to section 

23 17(b)’’; 

24 (2) in subsection (e)— 

25 (A) in paragraph (2)— 


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1 (i) by inserting ‘‘either’’ after ‘‘rentals 

2 and’’; and 

3 (ii) by inserting ‘‘or the inclusion in a 

4 reinstated lease issued pursuant to the pro5 visions of section 17(c) of this Act of a re6 quirement that future rentals shall be at a 

7 rate not less than $5 per acre per year, 

8 all’’ after ‘‘per acre per year,’’; and 

9 (B) in paragraph (3)— 

10 (i) by striking ‘‘(3) payment’’ and in11 serting the following: 

12 ‘‘(3)(A) payment’’; and 

13 (ii) by adding at the end the fol14 lowing: 

15 ‘‘(B) payment of back royalties and inclu16 sion in a reinstated lease issued pursuant to the 

17 provisions of section 17(c) of this Act of a re18 quirement for future royalties at a rate not less 

than 162 19 ⁄3 percent: Provided, That royalty on 

20 such reinstated lease shall be paid on all pro21 duction removed or sold from such lease subse22 quent to the cancellation or termination of the 

23 original lease; and’’; 

24 (3) by redesignating subsections (f) through (i) 

25 as subsections (g) through (j), respectively; 


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1 (4) by inserting after subsection (e) the fol2 lowing: 

3 ‘‘(f) Where an unpatented oil placer mining claim val4 idly located prior to February 24, 1920, which has been 

5 or is currently producing or is capable of producing oil 

6 or gas, has been or is hereafter deemed conclusively aban7 doned for failure to file timely the required instruments 

8 or copies of instruments required by section 314 of the 

9 Federal Land Policy and Management Act of 1976 (43 

10 U.S.C. 1744), and it is shown to the satisfaction of the 

11 Secretary that such failure was inadvertent, justifiable, or 

12 not due to lack of reasonable diligence on the part of the 

13 owner, the Secretary may issue, for the lands covered by 

14 the abandoned unpatented oil placer mining claim, a non15 competitive oil and gas lease, consistent with the provi16 sions of section 17(e) of this Act, to be effective from the 

17 statutory date the claim was deemed conclusively aban18 doned. Issuance of such a lease shall be conditioned upon: 

19 ‘‘(1) a petition for issuance of a noncompetitive 

20 oil and gas lease, together with the required rental 

21 and royalty, including back rental and royalty accru22 ing from the statutory date of abandonment of the 

23 oil placer mining claim, being filed with the Sec24 retary— 


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1 ‘‘(A) with respect to any claim deemed 

2 conclusively abandoned on or before the date of 

3 enactment of the Federal Oil and Gas Royalty 

4 Management Act of 1982, on or before the one 

5 hundred and twentieth day after such date of 

6 enactment, or 

7 ‘‘(B) with respect to any claim deemed 

8 conclusively abandoned after such date of enact9 ment, on or before the one hundred and twen10 tieth day after final notification by the Sec11 retary or a court of competent jurisdiction of 

12 the determination of the abandonment of the oil 

13 placer mining claim; 

14 ‘‘(2) a valid lease not having been issued affect15 ing any of the lands covered by the abandoned oil 

16 placer mining claim prior to the filing of such peti17 tion: Provided, however, That after the filing of a pe18 tition for issuance of a lease under this subsection, 

19 the Secretary shall not issue any new lease affecting 

20 any of the lands covered by such abandoned oil plac21 er mining claim for a reasonable period, as deter22 mined in accordance with regulations issued by him; 

23 ‘‘(3) a requirement in the lease for payment of 

24 rental, including back rentals accruing from the 


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1 statutory date of abandonment of the oil placer min2 ing claim, of not less than $5 per acre per year; 

3 ‘‘(4) a requirement in the lease for payment of 

4 royalty on production removed or sold from the oil 

5 placer mining claim, including all royalty on produc6 tion made subsequent to the statutory date the claim 

7 was deemed conclusively abandoned, of not less than 

121 8 ⁄2 percent; and 

9 ‘‘(5) compliance with the notice and reimburse10 ment of costs provisions of paragraph (4) of sub11 section (e) but addressed to the petition covering the 

12 conversion of an abandoned unpatented oil placer 

13 mining claim to a noncompetitive oil and gas lease.’’; 

14 (5) in subsection (g) (as so redesignated)— 

15 (A) in paragraph (1), by striking ‘‘in the 

16 same manner as the original lease issued pursu17 ant to section 17’’ and inserting ‘‘as a competi18 tive or a noncompetitive oil and gas lease in the 

19 same manner as the original lease issued pursu20 ant to section 17(b) or 17(c) of this Act’’; 

21 (B) by redesignating paragraphs (2) and 

22 (3) as paragraphs (3) and (4), respectively; 

23 (C) by inserting after paragraph (1) the 

24 following: 


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1 ‘‘(2) Except as otherwise provided in this sec2 tion, the issuance of a lease in lieu of an abandoned 

3 patented oil placer mining claim shall be treated as 

4 a noncompetitive oil and gas lease issued pursuant 

5 to section 17(c) of this Act.’’; and 

6 (D) in paragraph (3) (as so redesignated), 

7 by inserting ‘‘applicable to leases issued under 

8 subsection 17(c) of this Act (30 U.S.C. 

9 226(c))’’ after ‘‘this section,’’; 

10 (6) in subsection (h) (as so redesignated), by 

11 striking ‘‘subsection (d)’’ and inserting ‘‘subsections 

12 (d) and (f) of this section’’; and 

13 (7) by striking subsection (i) (as so redesig14 nated) and inserting the following: 

15 ‘‘(i)(1) In acting on a petition to issue a noncompeti16 tive oil and gas lease, under subsection (f) of this section 

17 or in response to a request filed after issuance of such 

18 a lease, or both, the Secretary is authorized to reduce the 

19 royalty on such lease if in his judgment it is equitable to 

20 do so or the circumstances warrant such relief due to un21 economic or other circumstances which could cause undue 

22 hardship or premature termination of production. 

23 ‘‘(2) In acting on a petition for reinstatement pursu24 ant to subsection (d) of this section or in response to a 

25 request filed after reinstatement, or both, the Secretary 


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1 is authorized to reduce the royalty in that reinstated lease 

2 on the entire leasehold or any tract or portion thereof seg3 regated for royalty purposes if, in his judgment, there are 

4 uneconomic or other circumstances which could cause 

5 undue hardship or premature termination of production; 

6 or because of any written action of the United States, its 

7 agents or employees, which preceded, and was a major 

8 consideration in, the lessee’s expenditure of funds to de9 velop the property under the lease after the rent had be10 come due and had not been paid; or if in the judgment 

11 of the Secretary it is equitable to do so for any reason.’’. 

Æ 


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